Five9 Target of Unusually High Options Trading (NASDAQ:FIVN)

Five9, Inc. (NASDAQ:FIVN) was the target of some unusual options trading activity on Tuesday. Investors purchased 8,504 call options on the company. This represents an increase of approximately 2,115% compared to the average daily volume of 384 call options.

Five9 Trading Down 0.7%

Five9 stock opened at $18.59 on Wednesday. The stock has a market cap of $1.45 billion, a PE ratio of 206.58, a P/E/G ratio of 2.20 and a beta of 1.27. The company has a current ratio of 4.44, a quick ratio of 4.44 and a debt-to-equity ratio of 1.04. The stock has a 50-day moving average price of $23.20 and a 200 day moving average price of $25.60. Five9 has a 52 week low of $17.97 and a 52 week high of $49.90.

Five9 (NASDAQ:FIVN) last released its quarterly earnings results on Friday, August 22nd. The software maker reported $0.76 earnings per share (EPS) for the quarter. The company had revenue of $283.27 million for the quarter. Five9 had a net margin of 0.80% and a return on equity of 8.91%. Equities research analysts predict that Five9 will post 0.28 earnings per share for the current fiscal year.

Five9 announced that its Board of Directors has initiated a share buyback program on Tuesday, November 11th that permits the company to buyback $50.00 million in outstanding shares. This buyback authorization permits the software maker to reacquire up to 3.2% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s board believes its shares are undervalued.

Insiders Place Their Bets

In other Five9 news, EVP Panos Kozanian sold 10,860 shares of the stock in a transaction dated Thursday, September 4th. The shares were sold at an average price of $25.87, for a total value of $280,948.20. Following the completion of the transaction, the executive vice president directly owned 105,315 shares of the company’s stock, valued at approximately $2,724,499.05. This trade represents a 9.35% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Tiffany N. Meriweather sold 7,861 shares of the business’s stock in a transaction that occurred on Thursday, September 4th. The stock was sold at an average price of $25.72, for a total value of $202,184.92. Following the sale, the insider directly owned 218,978 shares in the company, valued at $5,632,114.16. This trade represents a 3.47% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 53,738 shares of company stock worth $1,380,677. Insiders own 1.60% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of FIVN. Global Retirement Partners LLC boosted its holdings in shares of Five9 by 81.7% during the third quarter. Global Retirement Partners LLC now owns 1,228 shares of the software maker’s stock worth $30,000 after purchasing an additional 552 shares during the last quarter. Nisa Investment Advisors LLC purchased a new position in Five9 during the second quarter worth about $32,000. Quarry LP purchased a new position in Five9 during the third quarter worth about $33,000. Advisory Services Network LLC acquired a new stake in Five9 in the 3rd quarter worth about $38,000. Finally, Pilgrim Partners Asia Pte Ltd purchased a new stake in Five9 in the 3rd quarter valued at about $45,000. 96.64% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of analysts have commented on the company. Zacks Research downgraded Five9 from a “strong-buy” rating to a “hold” rating in a research report on Friday, November 7th. DA Davidson reaffirmed a “neutral” rating and set a $28.00 price target on shares of Five9 in a research note on Friday, September 12th. Morgan Stanley set a $30.00 price objective on shares of Five9 in a research report on Tuesday, October 21st. Weiss Ratings restated a “sell (d+)” rating on shares of Five9 in a report on Thursday, November 13th. Finally, Wall Street Zen cut shares of Five9 from a “strong-buy” rating to a “buy” rating in a research report on Saturday. Thirteen analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $35.19.

About Five9

Five9, Inc, together with its subsidiaries, provides intelligent cloud software for contact centers in the United States, India, and internationally. It offers a virtual contact center cloud platform that delivers a suite of applications, which enables the breadth of contact center-related customer service, sales, and marketing functions.